Emerging Market & Eco-System for PCB Manufacturing Industry in India

Size: px

Start display at page:

Download "Emerging Market & Eco-System for PCB Manufacturing Industry in India"

Poppy Prudence Rose
7 years ago
Views:

1 Emerging Market & Eco-System for PCB Manufacturing Industry in India TPCA Expo Taipei Oct

2 Contents Why India Market Scenario Policies & Eco System in India PCB Industry Key Facts Dedicated PCB Cluster at Gwalior, Madhya Pradesh ELCINA Clusters About ELCINA

3 Why India? 1. Huge Market..and growing 2. Conducive Policy Environment incentives & subsidies 3. Large Talent Pool..educated & skilled 4. Low Operating Cost..better margins 9 Pillars of Digital India Program

4 Why it makes perfect sense for the Electronics Industry to Make in India Manufacturing base in close proximity to the growing market Clear vision and road map of the government in Digital India Incentives and other schemes under the National Policy for Electronics 2012 to promote manufacturing Trained manpower Improved infrastructure Already attracted 3 Bn USD in investments from leading electronics companies under MSIPS Scheme Handsome returns on investment at low risks

5 Market Scenario Present Indian market demand: Estimated at US$ 100 Bn. Domestic Production: US$ 40 billion (40%) Balance 60% - Imports Market growing by 25% per annum By ~ Expected to reach between US$ billion (12% of global production) Present share of Electronics Hardware manufacturing in GDP < 2.0% Huge Demand supply gap big market opportunity!

Indian Electronic Industry Production Figures Strategic Electronics $ 1.8 Bn Industrial + Other $ 5.89 Bn Comm. & Broadcasting Equip. $ 10.00 Bn Consumer Electronics $ 9.

6 Indian Electronic Industry Production Figures Strategic Electronics $ 1.8 Bn Industrial + Other $ 5.89 Bn Comm. & Broadcasting Equip. $ Bn Consumer Electronics $ 9.55 Bn Components $ 5.37 Bn Computers $ 1.78 Bn Indian Electronic Industry ( # ) Total $ 34.4* Billion (1,96,103 Cr) # Estimated figures from DeitY Annual Report

7 INDIAN ESDM INDUSTRY KEY SEGMENTS - Sectors with high potential 1. Consumer Electronics 8. Solar Electronics 2. IT Hardware 9. Strategic Electronics 3. Industrial Electronics 10. Medical Electronics 4. PCB Manufacturing 11. Automotive Electronics 5. PCB Assembly (EMS) 12. Communications Electronics 6. Passive Components 13. PCB Design 7. Semiconductor & Active Components 14. LED Lighting

8 Market Size- Key Product Segments Mobile Market- 257 million mobile phones in CY million Smartphones comprising 30% of all shipments, growing rapidly at 46% vis-à-vis CY Equals 14.4 % of the global mobile demand and total market size for FY was approx. US$ 10 billion Auto Components & Aggregates market was US$ 69 billion in 2015 projected to grow to US$ 110 billion by % of this or over US$ 18 billion will be Auto electronics Set Top Box Market 39 million units in 2015 growing to 52 million units in 2018 Flat Panel Displays From 14 million units (US$ 6.4 billion) in 2015 to 19 million (US$ 8.38 billion) Laptop Market is growing from 7 million units (US$ 3,28 n) in 2015 to 9 million units (US$ 4.30 Bn) in 2019 Other growing markets Security Products Power Electronics, LED Products and more

9 KEY NATIONAL PROGRAMS National Policy on Electronics Vision of National Policy on Electronics To create a globally competitive electronics design and manufacturing industry to meet the country's needs & serve the international market. Vision of Digital India Digital Infrastructure as a Utility to Every Citizen Digital India Governance & Services on Demand Digital Empowerment of Citizens A National Program designed to facilitate INVESTMENT, foster INNOVATION, enhance SKILL DEVELOPMENT, protect INTELLECTUAL PROPERTY and build best-inclass MANUFACTURING INFRASTRUCTURE. Make in India THERE'S NEVER BEEN A BETTER TIME TO MAKE IN INDIA.

10 National Policy for Electronics 2012 Semiconductor Wafer Fab Modified SIPS Electronic Manufacturing Clusters (EMC) Creating Ecosystem Building Demand National Programs- E- Governance, Broadband etc. National Optical Fibre Network Tablets for Students Preferential Market Access Electronics Sector Skill council Identifying major job roles & Occupational Standards Human Resources R & D initiatives R&D/Innovation Promotion Electronic Development Fund

11 Modified Special Incentives Package (M-SIPS) Subsidy up to 25% of investment in Plant & Machinery and Building Reimbursement of CVD/excise for capital equipment in non- SEZ units Reimbursement of Central taxes and duties for 10 years in select high tech units like fabs and ATMPs Available for entire value chain of identified electronics products Special benefit as 10% Production Subsidy on Value Addition for PCB Manufacturing Incentives available for 10 years from the date of approval

12 Key steps taken for boosting Electronics Components Manufacturing Industry Special incentives for Chip Components and PCB 10 % production subsidy Low threshold (Under M-SIPS Scheme) of Electronic Components Rs 50 million as compared to Rs 100 million for other products for claiming 25% Grant PCB Manufacturing covered at Rs 50 Million threshold Lowering the threshold for EMS from Rs 1000 million to Rs 100 million (Under M-SIPS Scheme) increasing demand for local components Dedicated PCB Cluster planned at Gwalior, Madhya Pradesh ( 300 kms from New Delhi) with all amenities and common facilities provided by the Govt Elimination of inverted duty structure

13 PCB Industry India Market size in INR 8,000 Crores (US$ 1.2 Bn) Expected CAGR - 15% Anticipated size in INR 15,700 Crores (US$ 2.41 Bn) (Note: Including Populated PCB s, this figure will be 2.5 to 3 times of above figure, ie. About US$ 7 Bn) Present Scenario Domestic Production 25% Imports 75% Exports 5-6%

14 Dedicated PCB Cluster at Gwalior, Madhya Pradesh Gwalior Mumbai Pune Delhi Madhya Pradesh Kolkata Bhopal Indore Jabalpur Madhya Pradesh- The Heart of India Bangalore Chennai Major Cities

15 POLICY INITIATIVES.. EXISTING 75% Rebate on Cost of (government) Land 25% Capital Investment Subsidy (Under M-SIPS) 5% Interest Subsidy EXEMPTIONS Like Stamp Duty, Registration fee etc. REIMBURSEMENT Of Cost of Skill Gap Training upto 50% 50% TO 75% Reimbursement of Paid VAT & CST 5 Years Exemption for Entry Tax + OTHERS

16 Special benefits for PCB Cluster 10% Production Subsidy (Under M-SIPS)- by Govt of India Availability of Goo quality Water & Power for Sustainable PCB manufacturing. Common Effluent Treatment Plant (ETP) and Total Waste Management in the cluster. Common facilities like employee hostel, skill development centre etc Centralised warehousing facility for imported inputs like laminates, prepregs, copper foil, photopolymer films & photo-tools, etc. Trained technicians are available for high precision PCB manufacturing Exemption on Existing FAR (Floor Area Ratio) Power Supply 24X7 Exemption under Labor Law & Other Regulations Self-Certification of Registration etc

17 ELCINA ELECTRONICS MANUFACTURING CLUSTERS State-of-the-art industrial infrastructure Suitable for manufacturing units of varying sizes to sq mtrs. World class facilities & services like administration, Logistics Support, reliable Power, lighting, service roads, communication, Support services, food & water, Banking, security services etc. Managed by Special Purpose Vehicle (SPV), a company owned by the manufacturers in the cluster

18 ELECTRONICS MANUFACTURING CLUSTERS IN INDIA ELCINA is supporting the PCB Cluster in Gwalior, Madhya Pradesh in coordination with MP state Govt

19 Success Stories Companies investing in electronics manufacturing 1. Foxconn is setting up manufacturing facilities in several states. Signed a $5 billion deal to set up R&D and hi-tech manufacturing facilities in western India. 2. Lenovo and Motorola to start manufacturing smartphones in India at a 40,000 square feet factory in Sriperumbudur, Chennai 3. Foxconn has also announced that it would inject $20 billion into India s solar sector along with Japan s SoftBank and India s own telecom firm, Bharti. 4. Samsung, the country's largest phone seller, has been manufacturing in India since It is investing more than Rs 5000 Million to add capacity with benefits under MSIPS Policy. 5. Micromax, Intex and Lava, Indian mobile brands setting up assembling facilities in Hyderabad and Greater Noida in North India respectively. 6. Chinese phone maker Gionee investing Rs 3000 Million over the next three years with full SMT and Testing facilities. 7. Major MSIPS Investments worth Rs Crores (US$ 17 Billion) applications received by companies such as Bosch & Nippon (Auto Electronics), Sterlite (Display Fab), Jabil, SGS, Sahasra and many more in EMS,,, and more.

20 About ELCINA Established in India s oldest and largest Electronics Manufacturing Industry Association Interface with decision and opinion makers such as government and support organisations by creation of an interactive forum for the industry. Investment promotion Clusters for successful ESDM Investments, Central & State Government Policy support Business Promotion by creating Supply-Demand platforms and match-making Information dissemination through publications, electronic and printed media to keep industry abreast with latest developments Training and support to industry through Self Empowerment Programs and Centre for Knowledge management to equip them to upgrade Industry Research and Consultancy Services Representing the entire Indian Electronics Industry value chain at various National and International forums

21 is NOW!! Thank You

Karnataka Electronic System Design and Manufacturing (ESDM) Policy 2013

Karnataka Electronic System Design and Manufacturing (ESDM) Policy 2013 1 Preamble 1. Electronic System Design and Manufacturing (ESDM) is the fastest growing segment of the Information and Communications